Little-known Sky bill rule means millions of customers could avoid £38 a year hike
A little-known rule could allow millions of Sky customers to avoid a £38 a year bill hike next month.
The TV and broadband company is set to increase bills by 6.2% on April 1.
The increase is one of a series of bill hikes set to come into force in what has been dubbed “awful April” – follow our series to learn more.
Increases to broadband, TV and utility costs have led to estimates that the average household could see their bills could go up by £660.
For Sky customers the increase is the third in three years following a 6.7% hike in 2024 and a 8.1% climb in 2023.
The exact price each customer will see be charged depends on the specifics of their subscription, but if you currently pay £39 per month for Sky TV, Netflix, and Full Fibre 150 broadband, your bill will increase by £2.42, bringing the total to £41.42 a month.
Customers paying £35 per month for Sky’s Essential TV and Full Fibre 150 will see an increase of £2.17, bringing their total to £37.17 a month.
Meanwhile, those subscribed to Sky’s Essential TV and Full Fibre Gigafast Broadband at £51 per month will experience a rise of £3.16, taking their new total to £54.16 a month.
But, there is a chance that Sky customers can avoid the hike, by cancelling their subscription free of charge.
All customers impacted by the price hikes are able to exit their broadband contracts within 30 days of being informed of the rise.
Within this time period customers will not be charged a cancellation fee.
Unfortunately that policy does not extend to Sky Q TV, Sky Stream, or Sky Glass contracts and customers will be charged a cancellation fee if they exit within the minimum service term.
Sky TV’s exit fees start at £14 and climb to £42.89 a month, depending on your subscription.
This can lead to a hefty price tag for those wanting to cancel.
For example, if you cancel a standard Sky TV package priced at £33.82 per month with 12 months remaining on a 24-month contract, you would be required to pay the remaining 12 months’ fees in one lump sum.
This would result in a total early termination fee of £405.84.
So double check to see if you’re still within your contract term before cancelling.
Ofcom had estimated 32% of bundled broadband and pay-TV customers were out of contract as of the end of June 2024 – meaning they would have been free to shop around for cheaper deals.
The regulator’s analysis means some 1.8million Sky customers could be able to end their contracts without incurring a penalty ahead of April’s price hike.
April's TV price hikes
'Awful April' will also see the price of a TV licence increase
The price of a standard colour TV Licence rise from £169.50 to £174.50 a year, while a black and white licence will go up from £57 to £58.50.
For those paying monthly the increase will add £5 a month to the price of a colour licence or 42p a month for those with a black and white licence.
Legally, if anyone in your household watches live television the property needs to be covered by a licence.
If you’re caught watching live television, including that broadcast across Sky or streaming services, without a licence you could face a fine of £1,000, plus any legal costs and/or compensation
But, if you only ever watch television using catch-up services and never watch live TV across any platform you do not need a licence.
If you’re watching BBC iPlayer be aware that you also wont be able to legally record or download programming without a licence.
If you don’t want to consider cancelling there are discounts available including for those over 75.
If you’re living in residential care or sheltered accommodation, or if you’re registered blind, you could be entitled to a discount.
And, you can claim a free TV licence if you’re 75 or older and claim Pension Credit or live with a partner who receives the benefit.
You can apply for your discounted or free licence online or by calling 0300 790 6071.
Customers can also consider options such as downgrading their services, or looking for a better deal.
If you do wish to keep your Sky services do consider looking around to check what similar providers are charging and haggle.
The first step is to find out what the cheapest deal on the market is.
Then simply call your telecom company and say you’re unhappy with their price.
You can tell them if you’ve found a better price somewhere else and then emphasise that, as a loyal customer, you want to know if you can get a better deal.
The worst they can say is no, and you’re no worse off.
Comparison sites like Uswitch.com or Moneysavingexpert.com can help you to find the best deals on the market.
TV costs can easily escalate with multiple subscriptions and streaming services.
So, with bills rising across the board, it’s a great time to check your subscriptions and end those you don’t use.
It’s been estimated that Brits waste £700million a year on unused subscriptions that have been left to roll over.
Your first step should be to check any direct debits coming out of your bank account, bearing in mind some fees may be taken annually.
Don’t forget to also check if you’ve subscribed to services through the Apple App Store or Google Play.
If you’re not using a service cancel your subscription and consider limiting the number you have at any one time.
How do I switch providers?
Switching TV, broadband and landline providers has become significantly easier due to new rules introduced in September 2024.
Customers now only need to contact their new provider to make the switch, eliminating the need to deal with their current provider.
The rule changes also ensure that customers won’t pay notice-period charges beyond the switch date, meaning they won’t be billed for overlapping services.
Additionally, providers are required to compensate customers for any issues during the switch, such as being left without service for more than one working day.
The amount of compensation will vary depending on the situation.
The new rules align broadband and TV switching with mobile switching.
How to save on broadband and TV bills
HERE'S how to save money on your broadband and TV bills:
Audit your subscriptions
If you’ve got multiple subscriptions to various on-demand services, such as Amazon Prime, Netflix, and Sky consider whether you need them all.
Could you even just get by with Freeview, which couldn’t cost you anything extra each month for TV.
Also make sure you’re not paying for Netflix twice via Sky and directly.
Haggle for a discount
If you want to stay with your provider, check prices elsewhere to set a benchmark and then call its customer services and threaten to leave unless it price matches or lowers your bill.
Switch and save
If you don’t want to stay with your current provider check if you can cancel your contract penalty free and switch to a cheaper provider.
A comparison site, such as BroadbandChoices or Uswitch, will help you find the best deal for free.
Do you have a money problem that needs sorting? Get in touch by emailing money-sm@news.co.uk.
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